Speaking at an ICAEW (Institute of Chartered Accountants in England and Wales) banking conference yesterday, Ackerman said: “Calls to limit pay in the financial services sector are unlikely to be conducive to financial stability. It’s not popular, but it seems to me that as a general rule, banks which were able to pay well and attract the best talent fared better in the crisis.”

Earlier this week, it emerged Deutsche is planning to join the ranks of global banks increasing base salaries to reduce the amount paid out in discretionary compensation amid the storm over bonuses.

Both Credit Suisse and UBS have already pledged to raise the salary component of senior bankers’ pay packages to reduce the impact of regulatory rules on equity-based payouts and claw-back provisions.

Ackermann also hit out yesterday at US plans to split up banks or limit the size and range of their activities, calling the proposals “misguided”. He insisted that the risk profile of a bank is more material to stability, than size.